FATCA & CRS Initiative
The FATCA/CRS regime was brought into force to detect and bring into undisclosed record assets held by citizens in foreign countries, by imposing reporting obligations on the Financial Institutions (FFIs) of each participating country.
FATCA & CRS Initiative
The FATCA/CRS regime was brought into force to detect and bring into undisclosed record assets held by citizens in foreign countries, by imposing reporting obligations on the Financial Institutions (FFIs) of each participating country.
The Need for FATCA/CRS Reporting
Foreign citizens residing in the EU were subject to adverse effects, due to FATCA/CRS, including frozen savings accounts or being denied access to banking services, due to the reluctance of financial institutions to follow costly FATCA/CRS reporting procedures.
In its efforts to improve transparency and combat tax evasion, the OECD and the IRS have reached an agreement to enforce a systematic reporting framework that acknowledges the complications faced by foreign citizens. Recent developments and advancements regarding FATCA/CRS have opened up a new dimension, boosting information exchange between the EU and other countries, and improving transparency globally
When FATCA Reports be filed?
Foreign Financial Institutions (FFIs) are obliged to prepare FATCA/CRS reports in XML format annually.
Challenges in FATCA/CRS Reporting
Identifying the Reportable Accounts
The way firms and institutions record or store customer data may not be adequate to identify the data that needs to be reported. This means that eligible parties will have to perform extensive data cleaning exercises to remain compliant, which is a tedious and time-consuming task.
Integrating Integral Systems
Multiple systems have to be linked efficiently to enable data collation and aggregation. This is a challenging task, considering the complexity of the eligible institution’s IT architecture and scalability.
Complying with the Relevant Reporting Schema
Eligible firms and institutions need to have enhanced systems, to be able to monitor and assess transactions in capital markets for any potential withholding and reporting. This requires implementation of a relevant reporting schema, in order to capture additional data, which is a complicated task that requires an in-depth understanding of FATCA requirements and the relevant taxonomy.
Lack of Operational Efficiency
Usually, data diverges across multiple products and region-specific data repositories. Synchronising the data from different departments, in order to make the required decisions with respect to account holders, is a vital task. Only a few institutions that implement proper FATCA/CRS solutions that address the above issue, succeed in error-free reporting.
Lack of Trained Resources and Short Deadlines
FATCA/CRS is an exhaustive regulation. The employees of affected institutions may not have absolute knowledge of the finer details of the regulations, considering the critical tasks and stringent deadlines. As a result, some companies seek an external solution to help interpret the regulation and to identify its impact on the business process for punctual, error-free filing.
Challenge in Integrating the Systems
Multiple systems with client information within the institution’s IT landscape must be connected efficiently, in order to enable data collation, so that the reports required for filing can be generated. This is a pretty difficult task, as the IT structure of the institution must be suitable, to enable this. Implementing a robust FATCA/CRS solution can be a lifesaver.
How DataTracks helps
Introducing, DataTracks Oxbow:
DataTracks’ Oxbow is our cloud-based solution is designed to handle complex regulatory submissions such as FATCA/CRS. Built for speed, accuracy, and ease of use, the platform generates fully validated XML outputs aligned with the specific requirements of local and global regulatory bodies. Whether you’re submitting new, updated, or void reports, DataTracks ensures a seamless and stress-free filing experience.
Key Features
- Cloud-based, lightweight, and high-speed platform
- Simple Excel upload for easy data entry
- Built-in validations for error-free reports
- XML output generation for all supported regulations
- Support for all report types: New, Update, Void
- Fully compliant with local jurisdiction requirements
- Automatic handling of schema and regulatory updates
- Always up-to-date validation rules
- Digital signature and direct IRS submission for FATCA
- Multi-user access with role-based configurations (Preparer/Reviewer)
- Dedicated product support
- Seamless collaboration and filing workflow
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You must sign up with us on our website by providing some preliminary information about yourself. You may choose your username and password to access your user login. You must place your tagging requests and retrieve the XBRL outputs through this login. You can register on behalf of a company, or a firm of Chartered Accountants, Cost & Management Accountants or Company Secretaries
